by Jocelyn Parker
Detroit Free Press Business Writer
TROY, MI — Auto-parts supplier Delphi Corp. said Friday that none of its corporate officers received bonuses last year due to the company’s $56-million loss in 2003.
Delphi Chairman and CEO J.T. Battenberg’s pay fell about 45 percent in 2003 to $3.8 million after the company eliminated his bonus. Battenberg, 60, got $1.68 million in salary, $1.95 million in restricted stock and long-term incentive pay and $159,690 in other compensation, Delphi said in a filing with the U.S. Securities and Exchange Commission. He also received stock options valued at $2.2 million, but they were not exercised.
Though he made less money in 2003 as a whole, Battenberg’s base salary increased by $75,000 or 4.7 percent in 2003.
Spokeswoman Paula Angelo said Delphi cut its bonuses because it failed to meet its performance targets, which include earnings, customer satisfaction and quality.
“Certainly we didn’t hit our earnings targets,” Angelo said. It was “a fundamental factor.”
Delphi reported a loss last year as General Motors Corp., its biggest customer, cut production amid sagging demand for vehicles. Delphi, which spun off from GM five years ago, reported net income of $343 million in 2002.
In 2002, Delphi paid Battenberg a $2.1-million bonus as well as $1.6 million in salary, $3.05 million in restricted stock and long-term incentive pay, $110,140 in other compensation and stock options valued at $2.6 million on their grant date.
In other disclosures, Delphi said it wants to replace its stock incentive plan with a long-term incentive plan, which would rely more on cash and restricted stock than stock options. The goal of the new plan is to prevent share dilution.
Bloomberg contributed to this report.
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